Commercial Tax Credit | BMW of Pittsburgh

U.S. Tax Credit for Commercial Clean Vehicles

The Inflation Reduction Act (IRA) contains several sections that offer taxpayers credits for the purchase of clean vehicles including Battery Electric Vehicles (BEVs) and Plug-In Hybrid Electric Vehicles (PHEVs).

Section 45W: Simplified Business Access

While Section 30D has received significant public attention for consumers, Section 45W provides simplified access to tax credits for businesses operating qualified commercial clean vehicles. Unlike consumer credits, Section 45W eligibility is currently not tied to:

Vehicle MSRP limits
Assembly location requirements
Battery component restrictions
Critical mineral sourcing
Adjusted gross income thresholds

Qualification Requirements

Business Use

Vehicle must be subject to depreciation allowance and used in your business, not for resale

Leasing Eligibility

Lessors qualify for the credit if they are the owner for federal income tax purposes

TRAC Leasing

Entities providing TRAC leasing may not qualify for this credit

BMW Group EVs Eligible for Commercial Credits

Fully Electric (Battery) EVs

Full $7,500 Credit

BMW i4
BMW i5
BMW iX
BMW i7
MINI Cooper SE

Plug-In Hybrid EVs

Credit computed as the lesser of:

15% of vehicle basis
Incremental cost of vehicle
$7,500 maximum

Compact PHEVs - $7,000 Credit

BMW 330e
BMW 530e

Non-Compact PHEVs - $7,500 Credit

BMW X5 xDr50e
BMW 750xe
BMW XM
MINI Cooper SE Countryman

No Credit Limits

There is no limit on the number of credits a business can claim

Carryover Eligible

Section 45W credits can be carried over as a general business credit

Section 179 Special Deduction Opportunity

Business owners purchasing BMWs with GVWR exceeding 6,000 pounds may qualify for additional benefits:

Up to $28,900 Immediate Write-Off

Available for BMW X5 xDr50e, iX, and XM purchases in 2023

Additional Resources

IRS Commercial Clean Vehicle Tax Credits IRS FAQ Sheet on Commercial Clean Vehicles

Get Expert Guidance

Our team at BMW of Pittsburgh is here to help you navigate these opportunities and find the perfect BMW for your business needs.

Important: Potential federal tax credits, incentives and business deductions are not within BMW Group's control, are subject to change or expire without notice, and are referenced for informational purposes only. Eligibility for tax credits depends on the purchaser's tax liability and other factors. Tax credits are potential future benefits and not applied at the time of purchase. This information does not constitute tax, financial or legal advice. Please consult with your tax, financial or legal professional to determine eligibility, amount of credits, incentives or eligible deductions, if any, and further details.